Close Brothers to sell retail point of sale finance business to Klarna
Close Brothers has announced the sale of its retail point of sale finance business, Close Brothers Retail Finance, to Swedish payment solutions group Klarna for an undisclosed sum.
The disposal of the business, which provides unsecured finance to consumers through retailers, is expected to complete in the current calendar year, subject to regulatory approval and other customary conditions.
"The sale reflects the group's decision to exit the unsecured retail point of sale finance market after gradually and incrementally developing this business and assessing the market opportunity over the last several years," it said.
Close Brothers concluded that the business does not provide a long-term fit with its predominantly secured business model.
The business had a loan book of £66m at 31 July which will be treated as a discontinued operation in the company’s forthcoming full-year results.